Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

19. Ampco is a manufacturing company that has a contract to supply a customer with parts from April through September. However, Ampco does not

 image text in transcribed

19. Ampco is a manufacturing company that has a contract to supply a customer with parts from April through September. However, Ampco does not have enough storage space to store the parts during this period, so it needs to lease extra warehouse space during the 6-month period. Following are Ampco's space requirements: Required Space (ft.2) Month April 47,000 May 35,000 June 52,000 July 27,000 19,000 August September 15,000 The rental agent Ampco is dealing with has provided it with the following cost schedule for warehouse space. This schedule shows that the longer the space is rented, the cheaper it is. For example, if Ampco rents space for all 6 months, it costs $1.00 per square foot per month, whereas if it rents the same space for only 1 month, it costs $1.70 per square foot per month: Rental Period (months) $/ft./Month 6 $1.00 5 1.05 4 1.10 3 1.20 2 1.40 1 1.70 Ampco can rent any amount of warehouse space on a monthly basis at any time for any number of (whole) months. Ampco wants to determine the least costly rental agreement that will exactly meet its space needs each month and avoid having any unused space. a. Formulate a linear programming model for this problem. b. Solve the model by using the computer. c. Suppose that Ampco relaxed its restriction that it rent exactly the space it needs every month such that it would rent excess space if it was cheaper. How would this affect the optimal solution?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem well create a linear programming LP model Heres the stepbystep formulation and solution a Formulate a Linear Programming Model O... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Responsible Management Global Sustainability Responsibility and Ethics

Authors: Oliver Laasch

1st Edition

9781285981321, 1285080262, 1285981324, 978-1285080260

More Books

Students also viewed these General Management questions